Multiple Withholding Agent Rule

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A withholding agent is not required to file Form 1042-S only if a return is filed by another withholding agent reporting the same amount to the same recipient (the multiple withholding agent rule). If an Nonqualified Intermediary (NQI) or flow-through entity has provided another withholding agent with the appropriate documentation and complete withholding statement, including information allocating the payment to each recipient, the NQI or flow-through entity may presume that the other withholding agent filed the required Forms 1042-S unless the NQI or flow-through entity knows, or has reason to know, that the required Form 1042-S reporting has not been done.

The multiple withholding agent rule does not relieve withholding agents from Form 1042-S reporting responsibility in the following circumstances.

Any withholding agent making a payment to a Qualified Intermediary (QI), Withholding Foreign Partnership (WP), or Withholding Foreign Trust (WT) must report that payment as made to the QI, WP, or WT.

Any U.S. withholding agent making a payment to an authorized foreign agent must report that payment to the authorized foreign agent.

Any withholding agent making a payment to a U.S. branch treated as a U.S. person must report the payment as made to that branch.

Any withholding agent making a payment to a flow-through entity must report the payment as made to a beneficial owner, QI, WP, or WT that has a direct or indirect interest in that entity.

Any withholding agent that withholds an amount from a payment under Chapter 3 of the Code must report that amount to the recipient from whom it was withheld, unless the payment is reportable on another IRS form.

Any QI, WP, or WT required to report an amount to a withholding rate pool, and

An NQI or flow-through entity that has not transmitted a valid Form W-8 or other valid documentation to another withholding agent together with the required withholding statement.